Dollar Weaker Again

The dollar dropped for a second day despite weak numbers coming from Europe. Economic activity in Germany and France for the second quarter both came in subpar, adding to concerns that the Eurozone may be facing more stagnant growth. Regardless, most G10 currencies are trading stronger with the New Zealand dollar leading the group on half a percent gain. Emerging markets are also higher across the board. The won jumped the most since April after the BOK cut its 7-day repurchase rate. The Thai baht is up 0.4% on speculation that the economy will rebound in the second quarter and the Philippine peso rose the most since May on expectation for interest rate increases. Stocks are slightly positive at the open and Treasuries are stronger, with the 10-year trading below 2.40%.

Today'sEvents• Germany’s second quarter GDP shrank 0.2%, largely due to a warm winter that shifted production to earlier months.• French GDP stagnated for the second quarter, with zero growth for the last 2 quarters• Bank of Korea reduced its key rate to 2.25% from 2.5%, the first cut since May 2013 • The U.S. Treasury Department said that it will cut its 16% stake in Ally Financial by selling stock on the open market• Cisco is planning to cut 6,000 jobs, about 8% of the workforce, and is forecasting little to no sales growth• Banks including JP Morgan and Citigroup have been notified that regulators are preparing enforcement actions on currency rigging allegations • Canadian companies are posting their best profit in 3 years, as its economy is expected to grow at 2.2% for the year

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The dollar dropped for a second day despite weak numbers coming from Europe. Economic activity in Germany and France for the second quarter both came in subpar, adding to concerns that the Eurozone may be facing more stagnant growth. Regardless, most G10 currencies are trading stronger with the New Zealand dollar leading the group on half a percent gain. Emerging markets are also higher across the board. The won jumped the most since April after the BOK cut its 7-day repurchase rate. The Thai baht is up 0.4% on speculation that the economy will rebound in the second quarter and the Philippine peso rose the most since May on expectation for interest rate increases. Stocks are slightly positive at the open and Treasuries are stronger, with the 10-year trading below 2.40%.

Today's Events • Germany’s second quarter GDP shrank 0.2%, largely due to a warm winter that shifted production to earlier months.• French GDP stagnated for the second quarter, with zero growth for the last 2 quarters• Bank of Korea reduced its key rate to 2.25% from 2.5%, the first cut since May 2013 • The U.S. Treasury Department said that it will cut its 16% stake in Ally Financial...Read More